Question
1. The Esposito Import Company had 1 million shares of common stock outstanding during 2016. Its income statement reported the following items: income from continuing
1.
The Esposito Import Company had 1 million shares of common stock outstanding during 2016. Its income statement reported the following items: income from continuing operations, $9 million; loss from discontinued operations, $2.2 million; extraordinary gain, $2.8 million. All of these amounts are net of tax. |
Required: | |
Prepare the 2016 EPS presentation for the Esposito Import Company. (Amounts to be deducted should be indicated with a minus sign. Round your answers to 2 decimal places.) | |
Earnings per share: | |
Income from continuing operations | ? |
Loss from discontinued operations | ? |
Net income | ? |
4.
Roco Company manufactures both industrial and consumer electronics. Due to a change in its strategic focus, the company decided to exit the consumer electronics business, and in 2016 sold the division to Sunny Corporation. The consumer electronics division qualifies as a component of the entity according to GAAP. How should Roco report the sale in its 2016 income statement? |
a.)
Include in income from continuing operations as a nonoperating gain or loss. |
b.)
As an extraordinary item. |
c.)
As a discontinued operation, reported below income from continuing operations. |
d.) None of the above. 5.
|
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